In May, annual inflation in Latvia made 2.3%

The latest data of the Central Statistical Bureau (CSB) show that during the year* in May 2018, compared to May 2017, the average level of consumer prices rose by 2.3%. Prices of goods grew by 1.9% and prices of services by 3.2%.

Compared to
2015, in May 2018 consumer prices have risen by 5.8%. Prices for goods
increased by 4.9% and prices of services by 8.3%.

Compared to
May 2017, in May 2018 the average level of consumer prices was mainly
influenced by the rise in prices of goods and services related to transport,
goods and services related to housing, alcoholic beverages and tobacco
products, prices in miscellaneous goods and services group, as well as prices
of health care.

Within the group
of food and non-alcoholic beverages, the greatest upward pressure on the price
changes during the year was exerted by prices of butter (32.6%), sour cream
(10.3%), milk (7.4%), and kefir (8.5%). Increase was observed also in
prices of pork (of 8.5%), poultry (3.6%), eggs (11.2%), bread (1.9%), as well
as fruit and vegetable juices (4.8%). Reduction, in turn, was registered in
prices of sugar (of 31.2%), coffee (10.2%), fresh vegetables (3.6%),
flours and other cereals (6.5%), pasta products (6.7%), chocolate (3.1%) and
vegetable oil (5.4%).

The average
level of prices of alcoholic beverages and tobacco products went up by 4.1%.
Prices of alcoholic beverages grew by 3.2%, which was mainly influenced by the
rise in prices of spirits. Prices of tobacco products increased on average by
5.7%.

Prices of goods
and services related to housing rose by 3.2%. Increase was recorded also in
prices of solid fuels, maintenance charges in multi-occupied buildings, prices
of heat energy, refuse collection, as well as rentals for housing, while sales
resulted in a decline in prices of materials for the maintenance and repair of
the dwelling.

Within the health
care group, the average level of prices went up by 3.9%. Rise was registered in
prices of dental services, pharmaceutical products, and prices in medical
specialist practices.

Within the group
of goods and services related to transport, increase was recorded in prices of
fuels for transport (of 10.4%), of which prices of diesel grew by 12.5% and of
petrol by 9.8%, while prices of auto gas fell by 4.2%. Growth was recorded also
in prices of maintenance and repair of personal transport equipment. In its
turn, prices of passenger transport by air fell.

Within the group
of miscellaneous goods and services, the average level of prices grew by 4.8%,
which was mostly influenced by the rise in prices of motor vehicle insurance.
Increase was recorded also in prices of services in hairdressing salons and
personal grooming establishments, as well as prices of financial services.
Decline, in its turn, was registered in prices of articles for personal hygiene
and beauty products.

Among other
commodity groups, the most significant growth was recorded in prices of
footwear, catering services, telecommunication services and television
subscription fee. Drop, in turn, was observed in prices of household cleaning
and maintenance products, package holidays, and pet food.

Price changes by
commodity group (as per cent)

Commodity
group

Price changes in May 2018, compared to:

May 2017

December
2017

April 2018

Total

2.3

2.0

0.3

food

0.4

0.1

0.5

alcohol, tobacco

4.1

5.8

0.2

clothing, footwear

2.0

7.7

-0.9

housing

3.2

2.2

0.1

furnishings

-0.8

2.3

0.0

health

3.9

2.6

0.6

transport

3.7

1.4

0.9

communication

2.3

1.6

1.0

recreation, culture

0.3

0.2

-1.0

education

0.2

-1.2

0.0

restaurants, hotels

3.1

1.8

0.6

miscellaneous

4.8

2.1

1.2

During the
month, the average level of consumer prices increased by 0.3%

Compared to
April 2018, in May 2018 the average level of consumer prices rose by
0.3%. Prices of goods increased by 0.3% and prices of services by 0.4%. The
greatest pressure on the consumer prices was exerted by the growth in prices of
goods and services related to transport, food and non-alcoholic beverages,
prices in miscellaneous goods and services group, as well as by the drop in
prices of goods and services related to recreation and culture, and prices of
clothing and footwear.

Over the month,
prices of food and non-alcoholic beverages grew by 0.5%. Prices of fresh
vegetables (up by 7.7%), dried, salted or smoked meat (up by 1.4%), poultry (up
by 2.3%), butter (up by 6.4%), and ice cream (up by 3.5%) had the
most significant upward impact on the average price level within the group.
Decrease, in its turn, was recorded in prices of cheese (4.1%), chocolate (4.1%),
meat products (3.5%), and eggs (2.6%). Mainly due to
the influence exerted by discounts, prices of footwear fell by 1.8% and prices
of garments by 0.7%.

Prices of goods
and services related to transport increased by 0.9%, which was mostly
influenced by the rise in prices of fuels for transport (of 1.7%), of which
increase of 2.0% in diesel price and of 1.7% in petrol price. Prices of
passenger transport by air went up as well.

Within the
recreation and culture group, the average level of prices fell by 1.0%, which
was mainly affected by the 10.3% drop in prices of package holidays. Reduction
was recorded in prices of flowers, pet food, whereas increase was observed in television
subscription fee.

The rise in
prices within the group of miscellaneous goods and services was mainly
influenced by the increase in prices of articles for personal hygiene and
beauty products (of 1.8%) caused by the end of sales.

Among other consumption
groups, the most significant growth was recorded in prices of tobacco products,
telecommunication services, and pharmaceutical products. Discounts, in turn,
had lowering impact on beer prices. Information on
consumer price index changes in June 2018 will be published on
10 July. More information on consumer price changes is available in the
CSB database section Consumer Prices.

* The annual
inflation reflects consumer price changes, comparing the average price level in
the comparison month with the average price level in the corresponding month of
the previous year.

2019 –Another year of consumption changes: Danish example New Year is a time for various kinds of reflections, assessments and calculations. As soon as the BC’s readers are generally entrepreneurs and decision-makers, let’s see what changes appeared in Denmark during last two decades. That’s going to stimulate business in the Baltics…